Spotlight

Indian equity markets are expected to remain broadly steady, with easing crude prices providing some support to market sentiment. WTI crude is currently trading around the $89–90 per barrel range after oil prices declined amid signs of improving crude shipments from the Middle East. Higher oil flows and the planned release of emergency reserves are helping ease immediate supply concerns.

However, geopolitical risks remain elevated. Saudi-led coalition naval forces carried out an operation in Yemen’s Al-Hudaydah governorate aimed at disrupting Houthi threats to shipping routes in the southern Red Sea and Bab el-Mandeb. At the same time, attacks and threats against energy infrastructure remain a key risk, limiting the downside for crude prices and keeping market sentiment sensitive to further developments in the region.

Asian markets are trading marginally higher in early trade, with the Nikkei 225 up more than 0.20% and the Kospi also gaining over 0.20%, providing a mildly supportive global cue for Indian equities.

The near term fundamental outlook remains cautiously constructive. Easing crude prices and improving global risk sentiment are providing near-term support, but persistent geopolitical uncertainty and the possibility of renewed disruptions to energy and shipping routes are likely to keep investors cautious. The sustainability of the recovery will depend largely on crude-price stability and further developments across the Middle East.

Technical View

Nifty 50

Nifty 50 staged a recovery in the previous session after an extended period of weakness. However, the broader technical structure remains cautious, and the recent recovery needs follow-through buying to confirm a meaningful reversal. On the upside, 22,600 remains the immediate resistance zone. A sustained breakout above 22,600 could strengthen the recovery and pave the way toward 22,800–23,000. However, failure to sustain above 22,600 could trigger profit-taking and leave the index vulnerable to renewed selling pressure.

On the downside, 22,400 remains the immediate support, followed by the crucial 22,200 region. A decisive break below 22,200 could weaken the recent recovery and expose the index to fresh lower levels. Overall, the near-term technical outlook remains cautiously constructive following Monday’s rebound, but the recovery is yet to establish a confirmed bullish reversal. Sustained trading above 22,600 would be important to strengthen the recovery structure, while failure to hold 22,400 could revive downside pressure.

Bank Nifty

Bank Nifty’s broader trend remains cautious as the index continues to trade below several medium-term moving averages. On the upside, 55,000–55,200 is likely to act as the immediate resistance zone. A sustained breakout above 55,200 could strengthen the ongoing pullback and open the way toward 55,800–56,000.

On the downside, 54,400–54,300 remains the immediate support zone. A decisive break below 54,000 could reignite selling pressure and drag the index toward 53,800, followed by lower support levels. Momentum indicators are showing some improvement after the recent rebound, although the broader momentum structure has not yet turned decisively bullish. Overall, the near-term technical outlook for Bank Nifty remains cautiously constructive.